Abu Dhabi smelter deal signed

Abu Dhabi will be the site of the world's largest aluminium smelter if the joint venture signed between Mubadala Development and Dubai Aluminium is successful.

Aluminium smelting is an energy-intensive industry with smelters usually located where there are abundant power resources. Khaldoon Khalifa Al Mubarak, CEO and managing director of Mubadala Development said the joint venture has already been assured of a supply of gas for the project by the Abu Dhabi government. The gas will be used to generate a maximum of 2 250 MW of power through the on-site power plant.

The joint venture has created Emirates Aluminium (EMAL), which will oversee the operation and management of the new aluminium smelter at the Khalifa Port and Industrial Zone in Abu Dhabi.

The smelter complex will be developed in two phases: the first will cost US $5 billion and is due for completion in 2010, the second US $3 billion and will be ready in 2013. When finished the smelter will be capable of producing 1.4 million tonnes a year.

Engineering, procurement and construction management tendering is being done now, with an announcement expected by the end of April. The partners cited growth in international demand of 4% each year, currently the equivalent of an extra 1.3 million tonnes, as the reason for developing the smelter.

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